The screenshots posted by Android Police show settings for both SMS and MMS data, including a “delivery report for each SMS you send”. In the Hangouts app. you can also see a “via SMS” indicator so you can tell the difference between an instant message and a text message in Hangouts.

While this is just a rumor for now, the evidence looks compelling. And it makes sense for Google to consolidate communications in its Hangouts application, which works on both Android and iOS(s aapl). Users should be able to communicate with each other in whatever form they wish and even switch among them, say from IM chat to SMS, at will. If this report does pan out, I’d expect Google Voice to follow suit since it has a text message component as well.

So what you’re telling me is that this report is making it sound like is that we can send SMS and MMS via Wi-Fi? As in the like the Kineto app that T-Mobile uses? (At the cost of no calling) Sounds great to me! Count me in!

No. You can send hangouts via wifi and continue the conversation with your contact even after you loose wifi (transitioning natively to sms)

You’ll only be able to send SMS via wifi if they roll in Google Voice support (which currently allows you to do this, but only in the USA and maybe Canada). There’s currently no indication whether or not Google Voice support is included